Uganda is facing a potential loss of vital funding from the World Bank over its harsh anti-LGBTQ law, which has drawn international criticism and condemnation. The law, which President Yoweri Museveni signed in May 2023, imposes life imprisonment and even the death penalty for certain types of homosexual acts and criminalises the “promotion” of homosexuality.
The World Bank, one of Uganda’s largest donors, has announced that it will halt new loans to the country pending a review of the law’s impact on its projects and beneficiaries. The bank said that the law “fundamentally contradicts” its values and undermines its efforts to eradicate poverty and improve lives for all Ugandans.
The bank’s decision has already caused a sharp drop in Uganda’s currency, the shilling, which has depreciated by more than 10% against the US dollar since August. The bank’s suspension of new funding will also affect several key sectors of Uganda’s economy, such as health, education, agriculture, and infrastructure, which rely heavily on external financing.
Uganda’s central bank, however, has expressed optimism that a resolution can be reached with the World Bank through dialogue and negotiations. The bank’s deputy governor, Michael Atingi-Ego, said that the government has communicated with the World Bank to understand and address its concerns. He said the negotiations were progressing well, but he could not guarantee a solution before the end of the year.
The World Bank is not the only international actor that has expressed dismay over Uganda’s anti-LGBTQ law. The United States, the United Kingdom, Canada, Germany, and the European Union have also condemned the law and imposed sanctions or restrictions on some Ugandan officials and entities. Several human rights organisations and activists denounced the law as violating fundamental rights and freedoms.
Uganda, however, has defended its law as a reflection of its culture and sovereignty and accused the West of interfering in its internal affairs. Museveni, who has been in power since 1986, has dismissed homosexuality as a psychological disorder and a foreign import. He has also claimed that the LGBTQ community is trying to “recruit” people and undermine the country’s moral fabric.
The law is currently being challenged in Uganda’s Constitutional Court, which has taken a preliminary step to hear the case. The court will decide whether the law is consistent with the country’s constitution, guaranteeing equality and dignity for all citizens. The court’s ruling could significantly impact the fate of the law and the future of Uganda’s relations with the World Bank and other international partners.
Source: Business Insider Africa
